Here’s exactly how the tax system works and how much I’d spend on taxes throughout my 7 incomes sources - enjoy! Add me on Instagram: GPStephan
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The subject of TAXES is one of those topics that’s SO important for you to understand, because this is the stuff they don’t teach you in schools. So hopefully this brings some clarification to everyone watching - and answer your own curiosity as to how much my tax bill is..
You first have whats called your federal tax bracket, which is how much you owe the IRS, depending how much money you make.
In addition to that, we’ve got state income taxes depending on how much net income you have.
Third, the income I make may be considered “self employment income,” meaning it’s subject to self employment taxes…which, here in the United States, is an ADDITIONAL tax rate of 15.3%.
The REALITY is that self employed business owners have the benefit of getting a LOT of tax deductions and write offs available to them to bring down their taxable income.
This encourages business owners to not only continually re-invest back into their business to reduce their tax bill, but also give them more PROFIT left over that will *hopefully* circulate back into the economy, whether they invest in real estate, buy stocks, spend more on avocado toast and 20 cent coffee…
I think this also ENCOURAGES people to start their own businesses, because you can fully utilize the tax code as its meant to be used.
In addition to that, if you’re self employed, you can chose to open up what’s called an S-Corporation. I have this setup, where all of my income and expenses first go through the corporation, and then to me SEPARATELY as an employee of that business.
So in terms of how much money I’d pay in taxes…It really depends on what my gross income is at the end of the year, and how much of that I chose to re-invest back into the business as a write off. At a certain point in my tax bracket, it makes sense to purchase a better youtube studio, buy better equipment, and purchase things that will improve this channel in such a way that also lowers my tax liability.
And if there’s any take away from this entire video, it’s this:
The reality of making money and becoming wealthy FIRST begins with saving money.
But when you get to the point where you cannot feasibly save ANY MORE MONEY, THAT is when you need to begin MAKING MORE MONEY.
But THEN you get to a point where you’re making a sizable income, and TAX REDUCTION becomes just as important as SAVING MONEY. These are strategies to KEEP the money you make, because the money you KEEP can be GREATER than the money you earn.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
Second Channel: https://www.youtube.com/channel/UCa-ckhlKL98F8YXKQ-BALiw
The YouTube Creator Academy:
Learn EXACTLY how to get your first 1000 subscribers on YouTube, rank videos on the front page of searches, grow your following, and turn that into another income source: https://bit.ly/2STxofv $100 OFF WITH CODE 100OFF
Get 2 Free Stocks on WeBull when you deposit $100 (Valued up to $1000): https://act.webull.com/k/Vowbik9Tm5he/main
My ENTIRE Camera and Recording Equipment:
https://www.amazon.com/shop/grahamstephan?listId=2TNWZ7RP1P1EB
The subject of TAXES is one of those topics that’s SO important for you to understand, because this is the stuff they don’t teach you in schools. So hopefully this brings some clarification to everyone watching - and answer your own curiosity as to how much my tax bill is..
You first have whats called your federal tax bracket, which is how much you owe the IRS, depending how much money you make.
In addition to that, we’ve got state income taxes depending on how much net income you have.
Third, the income I make may be considered “self employment income,” meaning it’s subject to self employment taxes…which, here in the United States, is an ADDITIONAL tax rate of 15.3%.
The REALITY is that self employed business owners have the benefit of getting a LOT of tax deductions and write offs available to them to bring down their taxable income.
This encourages business owners to not only continually re-invest back into their business to reduce their tax bill, but also give them more PROFIT left over that will *hopefully* circulate back into the economy, whether they invest in real estate, buy stocks, spend more on avocado toast and 20 cent coffee…
I think this also ENCOURAGES people to start their own businesses, because you can fully utilize the tax code as its meant to be used.
In addition to that, if you’re self employed, you can chose to open up what’s called an S-Corporation. I have this setup, where all of my income and expenses first go through the corporation, and then to me SEPARATELY as an employee of that business.
So in terms of how much money I’d pay in taxes…It really depends on what my gross income is at the end of the year, and how much of that I chose to re-invest back into the business as a write off. At a certain point in my tax bracket, it makes sense to purchase a better youtube studio, buy better equipment, and purchase things that will improve this channel in such a way that also lowers my tax liability.
And if there’s any take away from this entire video, it’s this:
The reality of making money and becoming wealthy FIRST begins with saving money.
But when you get to the point where you cannot feasibly save ANY MORE MONEY, THAT is when you need to begin MAKING MORE MONEY.
But THEN you get to a point where you’re making a sizable income, and TAX REDUCTION becomes just as important as SAVING MONEY. These are strategies to KEEP the money you make, because the money you KEEP can be GREATER than the money you earn.
For business or one-on-one real estate investing/real estate agent consulting inquiries, you can reach me at GrahamStephanBusiness @gmail.com
Thank you. I learned so much in this video. I watch a lot of your videos!!
That’s why all of y’all are moving to tx . That is insane taxes . This is why your state as so many people flooding Texas . It’s like they are setting you up for failure . I plan to slowly over time buy houses . But I will start with only two for now .
unless a similar housing crises strikes like that of 2008-2012, getting similar returns are next to imposible.
especially now that companies like black rock are out bidding the majroity of low bids.
Really late at watching the video but i do want to say for Social Security tax on your income up to income of $160,200 (2023) so $19,864.8. However there is no limit on medicare so your taxes would be $29000. In total 48,864.8
You carried social security all the way up to 600k, it caps at like 150k then you just pay medicare above the cap. it makes a big difference.
That's outrageous that the government stealing that much money from you for doing absolutely nothing. That's ridiculous
Why don't cannibals eat clowns?
They taste funny.
If I hit the lottery for several million dollars and I pay all required taxes that year on the lottery winnings do I have to pay taxes again the next year on the remaining lottery winnings I just let set in my bank account?
Suddenly having my taxes taken out of my paycheck doesn't seem that bad.
I wouldn't say I like taxes, but I love how you explain it lol
I have a question So can someone use tax deductions and tax credits at the same time or just only one of them?
You are probably paying nothing . 100% write off like Donald trump
god dam americans get screwed over on taxes lol
You only pay SS on a maximum yearly income of 147000$ not the whole million
I automatically just take 50% and set aside for quarterly or yearly. Just to make sure cover all tax
Thank you. Love your videos. New subscriber. Appreciate the level of detail, actionable steps, and sense of humor. Inspired to replicate your successes!
Not sure how anyone can live in CA even if your a millionaire.
Great job!
Dude, thats one the better tax videos I've watched. Well done on such a horrible topic. haha
I hope he’s not still in California, I’ve lived in LA for a few years and no state is worth almost 200 grand in annual taxes
I don’t understand the across the board hate for wealthy people. I guess it’s different for people who want to work to be wealthy vs people who feel hopeless.
Miami is looking quite nice this time of year. Bisous from France! Don’t even ask about the tax code here 😂🤣
here in the uk we can get taxed up to 45% on anything we earn over £150,000 a year
Wow, no wonder America has such a huge economy. It just taxes anyone making money. Even with the write offs (which not everyone will know)
Okay, if I make 80k on roobinhood, when I pay taxes do I pay from my pocket or is it like 401k …80k and it deducted from their and you get what you get
Sounds like You pay way more than your "fair" share.
Great video. Just a minor correction. You only pay the 15% SE taxes on the first $142,800 in income earned. Income over that amount still incurs a 2.9% Medicare tax.
do you save all of it to invest in more real estate or to buy yourself a house?
Helpful video!
One of the best educational video ever made in mankind. And yes learning tax is hella interesting.
does Youtube send you a T4 (called here in Canada)??